A new ruleimplemented earlier this  year required hospitals topublish a “list price,” but due to the complexity of the healthcare pricing system, such numbers often can vary widely and be oflittle use to the consumer. (Photo: Shutterstock)

The Trump administration is considering requiring hospitals topublicly disclose the prices they negotiatewith insurers for procedures, a proposal that is drawing fierceopposition from hospitals.

The idea is to provide patients with more price transparency so they can compare pricesat different providers and shop for the best deal. The proposal,published last week, wouldrequire hospitals to list their actual prices, which areused as a starting point when negotiating rates with insuranceproviders. A new rule implemented earlier this  yearrequired them to publish a “list price,” but due to the complexityof the health care pricing system, such numbers often can varywidely and be of little use to the consumer.

Related: CMS pushes price transparency forhospitals

“It's an effort by the president to help put Americans back incontrol of price data,” Dr. Don Rucker, an official at theDepartment of Health and Human Services, says to the Wall Street Journal. “Our interest is on howcan we empower the American public to shop for their care andcontrol it.”

Patient advocates also applauded the proposal.

“If this rule goes forward, it will be a huge step towards truepricing transparency and will finally allow patients to really seewhat their costs will be before a service—something that has rarelybeen possible before,” says Caitlin Donovan, a spokeswoman for theNational Patient Advocate Foundation.

While the concept is rather intuitive, a number of health carepolicy experts are skeptical that it will lead to significantbehavioral change.

“Most consumers don't look at the price of health care servicesbefore they access care,” Zach Cooper, a health economist at Yale,tells NPR. “So I think we need to understand that most folks arenot going to, all of sudden, go Googling hospital prices and thenmake big changes as to where they [go for] care.”

It's not just patients who hospitals fear they will lose iftheir prices are disclosed. They also face the prospect of insurersdemanding better deals once they see the prices that theircompetitors have negotiated.

Insurers also have reasons to be concerned. Patients andemployers might be tempted to switch plans if they see that otherinsurers have negotiated better deals with hospitals.

Hospitals are already required to disclose their “list prices.”However, those prices are far higher than those paid by insurers,let alone most patients.

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